Carbon fiber prices up 10% in 2014
Jan 26, 2015
The price of general-purpose carbon fiber, used for sports gear, aircraft and automobiles, rose 10% in 2014.
As demand increased, Japan’s Toray Industries, Teijin and Mitsubishi Rayon, which occupy just above half the global carbon fiber market, cut back on discounts.
The price of general-purpose carbon fiber, used in golf club shafts, tennis rackets bicycles and other consumer products, rose. This type of carbon fiber now trades at $25 per kilogram on the global market, about 15-25% higher than its bottom price, set in 2012. The price in Japan is about 2,500 yen ($21.12) per kilogram, though it could go up.
In the past, general-purpose carbon fiber was often used for high-end sport utility bikes but is now used in smaller bikes more often. As for industrial uses, demand is growing for carbon fiber among makers of pressure vessels, as the shale gas market grows in the U.S.
Discounted prices for consumer-use carbon fiber, generally regarded as high quality and made by Japanese companies, is on the decline. Japanese makers are directly competing with Taiwanese and Korean rivals less often.
Prices for high-function, high-end carbon fiber, used for aircraft and autos, are relatively flat, as final-product makers and fiber makers have long-term contracts. Demand for high-function carbon fiber, used by the aerospace industry, accounts for 20% of total demand.
The prices of general-purpose carbon fiber on the global market declined between 2011 and 2013 due to strong overseas competition. They have since risen. The price level of general-purpose carbon fiber is, however, "still so low that makers are unable to make sufficient profits," according to a Teijin representative.
Some makers, however, said they "would not want to throw cold water on the momentum for wider use of carbon fiber by raising prices unnecessarily," said a Toray representative. Japanese fiber makers are hoping to attract demand from makers using carbon fiber as an alternative to metal and other materials. The environment for exports is improving because of the weaker yen. Some market watchers, therefore, expect that carbon fiber prices may not rise steadily.
Source: Nikkei Asian Review